All Forum Posts by: J Mishkin

every tenant i've encountered wants a ALL electric house. because it's 1 bill. haha. It doesn't matter if u tell them gas is cheaper.

on this newest house I'm doing I just made it all electric. easier installs too, no venting needed, etc.

oh yea, I've had some tenants complain recently. I'm in OHIO btw. They complained b/c they had a 280 dollar gas bill for a 1800sqft. house that they heat to 70 degrees... i mean come on.. I said oh wow, thats cheap!

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check out this deal I can get.

30 units total. 5 buildings - (20) - 3 units, (10) - 1 units

7 acres of land. 4 acres of woods.

Land is valued at almost 100k alone.

Condition is really ruff. The good is concrete block construction. Bad is it's on a septic system.

So along with a full remodel of everything, a new septic / or possibly tie into the main city sewer, and new water lines / or new wells dug.

So I'm thinking at least 200k to remodel and get them all going. Taxes owed are 20k.

So a total of about 280-300k for 30 units. Plus enough property to add more, or even storage units.

So with my quick figures this could net 8-10k / month profit and thats with a property manager and maintenance man with rents lower then market.

HMMMMMM..

now where to get some money :D

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I'm interested in a blanket loan as well. if anyone has any good lenders that will do this, please PM me the info.

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Doug,

I'm pretty much doing what you are preaching. I don't have a mortgage on the property. Everything is completely brand new inside and out of the home so maintenance is really not a issue. Even if something does come up, I will fix it myself for almost nothing. The only thing I pay for are the tax's which are around 1600/yr after I had them knocked down from 2600/yr.

In this market, right now, the house would sell for 50k.

Of course I have to get a REALLY good deal to invest more in dayton, as I'm getting these kind of deals in WAY better towns, better cash flows, and more equity.

Now if I could only get more money :(

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no dayton has a pop of around 160k right now..

but the "surrounding" areas have GROWN dramatically. So actually their are more people around this area then before. The air force base helps this area more then anything else.

I don't live in dayton, but I live near it. I have a couple SFH's in dayton. I have had good luck with renters. The one house is rented at 550/ month and I paid 12,900 for it and put 2,000 into it.

So yea.. great deals and renters looking for NICE houses. there are a lot of CRAP rentals around, so if you have a NICE one it's easy to get good people.

I focus on other areas (in central oh), don't ask me why I live near dayton.. for some reason I like it. haha.

I do know a lot of RICH people who invest in dayton though.. so thats a good sign to me.

This one guy I know rents houses out by ROOMS..

he makes a LOT of money doing this.. Renting out 4-6 rooms for 100 / week. Central bath / kitcen.

and since its a "boarding house" he can kick them out right then if they don't pay. Of course you have to deal with those issues and that kind of people.. something I won't do :)

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i agree. with this low amount of cash on hand, it might be risky getting a loan in 12-18 months.

Sounds like a decent deal just because the year of the building.

If its not in "that great" of a area, and your going to be stretching to get it, i'd probably pass.

I'll also tell u that I have NEVER met a realtor that knew what they were doing :) Most are pretty bad with real estate.

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awesome!

HUD house, I offered around 40% less then list, and they accepted!

never get tired of this feeling :)

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I've found some lenders around here that will do as low as 25,000.

Chase gave me a loan for 25k before, so you might try them.

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Originally posted by Jim Smith:

If your only at $65% LTV Will you or your dad qualify to refinance the business? At least this way you can lower the payments and get out from under the high interest rate.

I agree with this.

Have your dad REFI the business, in HIS NAME if you can't qualify. Or go in with him if needed.

Pay off the HML. Pay your dads loan for him.

This seems like the only way.

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Originally posted by Jon Holdman:

If you own just a couple of properties, like you and me, you can expect your expenses to be either much above or much below the 50% guideline. If my property stays rented all year, and nothing goes wrong, and no major expenses are incurred, then my expenses will be very low.

If, on the other hand, my tentant decidees to quit paying rent, and I have to do an eviction that takes two months, and they wreck the place in the meantime, I'm out two months rent, plus all the damage. So, my expenses would be much higher than 50%.

If your right on the edge, with rent right at PITI, then the least little hickup will have to come out of pocket. Even a quick two week vacancy is half a months rent that you'll have to make up out of pocket.

OTOH, if you own 10, 20, or 50 units, you can bet you'll have an eviction once a year or more often. If you own 50 SFRs, you must count on replacing two or three furnaces every year. A roof or two every year. So, if you're planning to get big, you have to plan for these expenses and not just hope for the best.

The tax breaks are way overrated. The useful part is that your net rental income is largely tax free. If you make significant income ($150K AGI) there's no offsetting regular income with passive losses. Over $100K AGI its limited. Even if you can take this, its limited to $25K. So, even it if works at first, it doesn't work work once you get more properties. Based on what you've said, I calculate your taxable income on that building at -$12,500 a year. So, if you have two of those deals, the third has no tax advantage for you at all. The only way around that limitation is to become a real estate professional. That means you have to spend at least 750 hours a year doing this (not too hard) AND more hours doing this that you do anything else. So, if you have a fully time job, you'll have to spend at least 2081 hours a year doing real estate.

I have more then 3 properties and I write off items on each of them every year.

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All Forum Posts by: J Mishkin

J Mishkin has started 8 posts and replied 45 times.

Post: GAS OR ELECTRIC FURNACE!!!

Post: oh wow, 30 unit for 60k. !!

Post: Portfolio Loans for investors with more than 4 fannie properties

Post: Kiwi 'lost' in Dayton OH

Post: Kiwi 'lost' in Dayton OH

Post: Possible first duplex deal

Post: Offer accepeted! Just got the call

Post: bank loans fo 50k and under?

Post: BADLY STUCK IN A HARD MONEY LOAN??

Post: How do you gather more properties?